Consumer supertanker finds new Cruising Speed
11 August 2006
UNITED KINGDOM — Retail research group Synovate Retail Performance's Retail Traffic Index™ (RTI™) for July, released today, shows signs of improvement over recent months. The number of shoppers in July was down by 2.5% on the same month last year, but up a healthy 11.5% on numbers in June this year. After April's figures, in which Easter fell this year but not last, they are the strongest of 2006.
Commenting on the rise, Dr. Tim Denison, Director of Knowledge Management at Synovate Retail Performance said; "The end of the World Cup, the start of a hot summer and the school holidays could not have come soon enough for retailers in the UK this year. Encouraged by the universal presence of summer Sales, shoppers were back out in numbers in July. Bear in mind though that July 2005 was a quiet month, on the back of the London bombings and the air of nervousness that was created nationwide.
"There is some sense that after a period in which the engines were set full astern, the consumer spending supertanker has now slowed down and found its new cruising speed. It's not full ahead but at least it's moving forward. We have seen the year-on-year decline in retail footfall improve from -6.1% in Q1 to -4.3% in Q2 and our expectations for the rest of the year are that the RTI will now plateau at about 2 points below 2005.
"We are reaching a state where the slowdown in consumer spending is being tempered by the more resilient consumer. Shoppers, no longer actively avoiding expenditure, seem to be more accepting of the constraints imposed by high debt levels and ongoing pressures on their disposable incomes. Retailers too, seem more attuned to the challenges of a slower rate of growth, somewhat choosier customers and the quest to preserve margins. These are the new realities of retail in 2006.
"This new sense of balance should not be confused with stability. With economic growth above trend, a tightening of credit terms and still rising energy bills the possibility of another tipping point is never too far away.
Retailers or analysts wishing to find out more about Synovate Retail Performance's award-winning customer services should contact Dr Denison at Synovate Retail Performance on 01908 682700. Media enquiries should be directed to Theo Chalmers at Verve PR on 01908 275271.
Contact(s) for this press release
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Tim Denison
Synovate Retail Performance |
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34 Walker Avenue |
Tel. +44 (0) 1908 682 700 |
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Theo Chalmers
Managing Director, Verve Public Relations |
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Park House, 8 Grove Ash |
Tel. +44 1908 275 271 |
Synovate Retail Performance provides footfall monitoring solutions, shopper tracking systems and in-store behavioural research to retailers worldwide. Its core products - Shopper Count, Shopper Interact and Shopper Engage - scientifically measure all aspects of a shopper experience from store entry to exit. It supplies national and international retailers with essential business metrics to drive accountability and performance improvement.
Synovate Retail Performance is home to the Retail Traffic Index series, which for over 10 years has been the industry's leading tracker of national, regional and sector retail footfall trends. It is also co-founder of the KPMG / Synovate Retail Think Tank, offering thought leadership on the state of retail health and the future of retailing.
General information for Synovate Retail Performance, email info.rp@synovate.com
Synovate Retail Performance Limited is registered in England and Wales under number 3552625 with its registered address at Minerva House, 5 Montague Close, London, SE1 9AY, UK. Synovate Retail Performance is a wholly owned subsidiary of Synovate.
About The Retail Traffic Index (RTI)
The RTI from Synovate Retail Performance is regarded as the national benchmark of retail shopper traffic flow. It is constructed using a nationally representative sample of over 520 million visits to over 3,100 retail premises per annum across the UK, excluding the grocery, convenience and minor retail service sectors.
For further details and a full explanation see here.
About Synovate
Synovate generates insights to help clients drive competitive brand, product and customer experience strategies. Now part of Ipsos, with offices in over 80 countries, our approach combines best in class global research capabilities with personalised service, local knowledge and the flexibility to create teams and processes that meet clients' specific requirements. At Synovate, our clients sit at the top of our organisational chart, driving us to continually develop more innovative research solutions that predict actual business outcomes.
For more information on Synovate visit www.synovate.com.